Thailand Severance Pay Calculator 2026 (Labour Protection Act s. 118)
Calculate severance pay in Thailand: 30 to 400 days' wages by length of service under section 118, pay in lieu of notice, leave pay and the tax-free part.
Severance is due when the employer ends the employment, including retirement, but not for serious misconduct under section 119 or when a fixed-term contract simply ends. Daily wage = monthly ÷ 30.
What it does
Under section 118 of the Labour Protection Act, as amended in 2019, an employee dismissed after at least 120 days receives 30 days of the last wage, 90 days after 1 year, 180 days after 3 years, 240 days after 6 years, 300 days after 10 years and 400 days after 20 years. Since Ministerial Regulation No. 394 of 2024, severance under the law is free of income tax up to the last 400 days' wages and 600,000 baht.
How to use it
- Type the last monthly wage and the dates of employment.
- Tick the box if no notice was given and add unused leave days.
- Read the severance, the other amounts and the tax-free part.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
How much severance after 7 years?
240 days' wages for 6 to 10 years of service. With 30,000 baht a month the daily wage is 1,000 baht, so 240,000 baht, all tax-free; one month in lieu of notice and 5 leave days add 35,000 baht.
Is severance pay taxed?
Only above the last 400 days' wages or 600,000 baht. After 25 years on 100,000 baht a month, the 400 days are 1,333,333.33 baht, of which 600,000 is tax-free and 733,333.33 taxable.
What is pay in lieu of notice?
If the employer dismisses without giving notice of at least one pay period, it must pay the wages for that period (section 17/1), usually one month for monthly-paid staff, in addition to severance.
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